Are you constantly on the verge of building your savings account but for some reason, it does not seem to ever grow? Then try these 5 sure-fire strategies to help you channel funds and build a solid savings mechanism. These are baby steps but they add up:
- Automatic bank transfers: set up a system in your online banking platform whereby a set amount is automatically transferred from your checking (current) account to your savings account semi-monthly or monthly as you earn or receive your paycheck. That way, what you do not see in your current account, you are less inclined to spend
- Separate savings accounts: open two savings account – one you channel funds from your side gig and never touch because it is out of sight; in short, do not have a debit card for such an account so you are not tempted to dip into it, and another a special purpose account for e.g. Christmas shopping or summer vacation
- Budget savings: when you purchase an item that was over-budgeted for because the item is on sale, or for a particular month, you reduce eating out by half or reduce the activity on some other budgeted expense category, move that extra money not spent into your savings account
- Bank loose change: anytime you get loose change back from purchases or transactions, put them away in a coin jar or piggy bank and at the end of the year, take the jar/piggy bank to the bank or coin counter, convert the coins into notes and pay it into your savings account
- Bank that cash-back money earned: For those of you with cash-back offers on credit cards, at the end of the month or quarterly, request for that cash back and pay it into your savings account
What other ways have you taken baby steps to bolster your savings? I’d love to hear from you, drop me comments, I read them all.